3.01       Seniority is defined as the length of an employee's service with the Company, calculated as the elapsed time from the date he was first employed, unless his seniority was broken, in which event such calculation shall be from the date that he returned to work following the last break in his seniority. 3.02       Seniority shall not be considered broken by reason of:

1. Absence on leave when granted mutually by the Company and the Union.
   
   
2. Absence due to seasonal lay off provided the employee is available for work on date of being recalled in the order of his seniority and in accordance with Article 3.06 [e].
   
   
3. Sickness or injury or transfer from one department to another.
   
   
4. Active service in the armed forces of the country.

3.03 - LAY OFFS

Procedure regarding lay offs:

STEP 1:

Should it become necessary to reduce the regular working force, all permit card help must be discharged before any Union members can be laid off.

STEP 2:

If further reduction of staff is necessary then the employees shall be laid off in order of seniority as defined in Article 3.01 and 3.02, provided that the senior employee is willing and able to perform the work required of him and provided the employee has been given the opportunity to apply for job training. The last member hired shall be the first member laid off and so on in that order. No employee of the Company other than a member of the Union shall do the work of a journeyman while any Union member is laid off.

3.04       When staffs are augmented, employees will be recalled in order of their seniority.

3.05       Wherever possible all maintenance repairs and painting will be done by employees during the slack periods of the year.

3.06 - LOSS OF SENIORITY

An employee will automatically lose his seniority and cease to be an employee of the Company for any of the following reasons:

1. If he quits;
   
   
2. If he is discharged for cause;
   
   
3. If he is absent from work for three [3] consecutive shifts without having notified the Company and received permission to be absent in advance where that is possible;
   
   
4. If he accepts gainful employment while on a granted leave of absence without the Company's and the Union's consent in writing;
   
   
5. If he has been laid off and fails to report for work within seven [7] days after written notice to report to work has been sent by registered mail to his last address registered with the Company; Provided that when an employee is recalled to work and does not report within forty-eight [48] hours the Company may recall the next employee in line, but he is subject to being displaced if the first employee recalled does report within seven [7] days;
   
   
6. An employee with less than ten [10] years seniority will lose his seniority and cease to be an employee of the Company in case of a layoff for a period of twelve [12] months. An employee with more than ten [10] years seniority will lose his seniority and cease to be an employee of the Company in the case of a layoff for a period of eighteen [18] months. When an employee returns to work for an aggregate of thirty [30] days or less during his layoff period, the employee's period of layoff under this section shall be considered not to have been interrupted.
   
   
7. If an employee accepts a position with the Company outside the bargaining unit, he will lose his seniority if he does not return to the bargaining unit within ninety [90] calendar days of the date he left the bargaining unit. This period may be extended by mutual agreement.
   
   
8. Notwithstanding [f] above, if an employee with less than one [1] year of seniority is laid off for six [6] consecutive months.

3.07 - JOB FAMILIARIZATION

Pursuant to the provisions of Article 2, when a new person is employed he shall:

1. If a member of the Union be deemed to be on a job familiarization basis for the first forty-five [45] days worked from the day he started with the Company. Such job familiarization period will be for the purpose of determining the employee's suitability for employment. During such period he shall be paid the job rate specified herein for the work he is doing;
   
   
2. If not a member of the Union but skilled in the job category for which he is employed, be deemed to be on a job familiarization basis for the first sixty [60] days worked from the date he started with the Company. Such job familiarization period will be for the purpose of determining the employee's suitability for employment. During such period he shall be paid the job rate specified herein for the work he is doing;
   
   
3. If not a member of the Union and not skilled in the job category for which he is employed, be deemed to be on a job familiarization basis for the first sixty [60] days worked from the day he started with the Company. Such job familiarization period will be for the purpose of determining the employee's suitability for employment. Such new person shall be paid the permit card rate for the first sixty [60] days worked. He shall thereafter be paid the job rate in accordance with Article 5 of this Agreement.
   
   
4. During the job familiarization period the person may be dismissed provided the reason for such dismissal is given to the Union in writing. The Company agrees, however, that an employee is entitled to a fair and reasonable opportunity to learn the job.

3.08 - SENIOR PREFERENCE FOR ADVANCEMENT

Whenever a job vacancy is created in any of the departments of the Company's operation, the Company shall post a standard notice on the bulletin board in each department for at least five [5] consecutive working days, soliciting the names of employees who wish to apply to fill such vacancy.

3.09       Any employee covered by this Agreement may apply in this manner and the vacancy shall be filled on the basis of seniority being the primary consideration, provided the employee has the merit and ability.

3.10       The man selected will be given a reasonable trial period to prove his suitability. He will have the right to return to his former job within thirty [30] days. Employees absent from work for a period not more than thirty [30] calendar days from the date the job was posted, will have the right to apply within one [1] week of their return to work.

3.11       If, after working on his new job, or in his new department the applicant finds the job has been discontinued, or for other reasons, he shall be transferred back to the department from which he last transferred, and he shall retain all his seniority rights.

3.12       The standard application form to be used for posting on the bulletin board shall specify the type of job vacancy, outline of work required, and specify the job's regular starting time. Regular starting time may only be changed pursuant to Article 4.

3.13       In the event differences arise which cannot normally be settled as to which of the applicants should be given a trial to fill the posted vacancy the matter shall, within three [3] days after the said difference arises, be dealt with under the Grievance Procedure, starting with Step 3.

3.14       Employee's who by reason of physical deficiency are required to transfer from their present department will retain their Company seniority. In all cases where it is necessary to transfer an employee for this reason, the Company and the Union will mutually decide on the department to which the employee will be transferred.

3.15 - SENIORITY RESPECTING OVERTIME

Subject to the efficient operation of the Company, it is agreed that in the event it is necessary to work overtime in any department, men shall be acquired in the order of their seniority within the department to do such overtime work.

In the event that sufficient men cannot be obtained from within the department, then men shall be acquired in the order of their seniority with the Company to do such overtime work.